Liquidity Program Options For Hotels
The federal and provincial governments are working on financial programs to help businesses manage at this time. Information that is being released is preliminary and we are awaiting more details, including how hotels can access these programs. The BCHA is actively advocating on your behalf, and is encouraging all properties to talk to your lender(s) about how COVID-19 is impacting your business. This page will be updated as new information becomes available.
David Lund, the Hotel Financial Coach, has some tips about how hotels can manage during a financial crisis.
David Lund, the Hotel Financial Coach, has some tips about how hotels can manage during a financial crisis.
SMALL & MEDIUM SIZED BUSINESS RECOVERY GRANTS
On October 9th, 2020, the provincial government launched the Small and Medium-Sized Business Recovery Grant program.. The five step program offers grants of $10,000 to $30,000 to eligible businesses. An additional $5,000 to $10,000 grant is available to eligible tourism-related businesses that have been hit especially hard by COVID-19.
On October 9th, 2020, the provincial government launched the Small and Medium-Sized Business Recovery Grant program.. The five step program offers grants of $10,000 to $30,000 to eligible businesses. An additional $5,000 to $10,000 grant is available to eligible tourism-related businesses that have been hit especially hard by COVID-19.
As of March 4, 2020, we have extended the application deadline to August 31, 2021 or until funds are fully committed, whichever comes first.
Additionally, businesses now only need to show a 30% revenue loss from March 2020 to time of application, when compared to the same one-month period the year before. These changes will ensure more businesses are eligible, while giving business owners the extra time they need to submit their applications.
We’ve also allowed for extra help with things like gathering the right documents during the application stage, or support with translation or interpretation services. Business can now get help throughout the process from a Small Business BC vetted professional service provider. This service will now be included in the up to $2,000 in additional government funding paid to the service provider.
Overview of changes:
Please visit the Program website for full eligibility criteria, to watch an information session webinar, and to find grant information translations in easily shareable PDFs.
If a business in your community has any questions or needs help, including language translation and interpretation support, call 1-833-254-4357 or email BusinessRecoveryGrantProgram@gov.bc.ca.
Additionally, businesses now only need to show a 30% revenue loss from March 2020 to time of application, when compared to the same one-month period the year before. These changes will ensure more businesses are eligible, while giving business owners the extra time they need to submit their applications.
We’ve also allowed for extra help with things like gathering the right documents during the application stage, or support with translation or interpretation services. Business can now get help throughout the process from a Small Business BC vetted professional service provider. This service will now be included in the up to $2,000 in additional government funding paid to the service provider.
Overview of changes:
- The Program has been extended to August 31, 2021 or until funds are fully expended, whichever comes first
- Applicants no longer need to show a revenue loss of 70% in March or April 2020 when compared to the same one-month period in 2019
- Businesses that have applied to the Program will have their applications re-evaluated if they didn’t qualify because of the previous 70% revenue requirement
- Businesses that have been approved for funding are not affected by these changes
Please visit the Program website for full eligibility criteria, to watch an information session webinar, and to find grant information translations in easily shareable PDFs.
If a business in your community has any questions or needs help, including language translation and interpretation support, call 1-833-254-4357 or email BusinessRecoveryGrantProgram@gov.bc.ca.
DEFERRAL OF CORPORATE INCOME TAX PAYMENTS
The deadline for income tax payments of September 30, 2020 has now passed. For an updated scope of information concerning income tax filing for 2019/2020, please see links below.
The deadline for income tax payments of September 30, 2020 has now passed. For an updated scope of information concerning income tax filing for 2019/2020, please see links below.
MORTGAGE PAYMENT DEFERRAL
The six largest banking institutions in Canada have made a commitment to work with personal and business banking customers on a case-by-case basis to provide flexible solutions to help them manage through various challenges. As a first step, this support will include up to a six-month payment deferral for mortgages, and the opportunity for relief on other credit products.
This will be done on a first come, first serve basis and requires a direct call to your bank. The Government has a strong commitment from banks that they will be flexible. We are encouraging all hoteliers to do this immediately.
Here are the helplines for each institution, which they have bolstered with more support:
BMO: 1- 877-788-1923
CIBC: 1-877-454-9030
RBC: 1-800-769-2511
Scotiabank: 1-833-315-4357
TD: 1-888-730-0075
National Bank of Canada: 1‑844‑394‑4494
Please let us or the Hotel Association of Canada know if you run into challenges or are denied flexibility. Cases can be taken back to Government.
The six largest banking institutions in Canada have made a commitment to work with personal and business banking customers on a case-by-case basis to provide flexible solutions to help them manage through various challenges. As a first step, this support will include up to a six-month payment deferral for mortgages, and the opportunity for relief on other credit products.
This will be done on a first come, first serve basis and requires a direct call to your bank. The Government has a strong commitment from banks that they will be flexible. We are encouraging all hoteliers to do this immediately.
Here are the helplines for each institution, which they have bolstered with more support:
BMO: 1- 877-788-1923
CIBC: 1-877-454-9030
RBC: 1-800-769-2511
Scotiabank: 1-833-315-4357
TD: 1-888-730-0075
National Bank of Canada: 1‑844‑394‑4494
Please let us or the Hotel Association of Canada know if you run into challenges or are denied flexibility. Cases can be taken back to Government.
CANADA EMERGENCY BUSINESS ACCOUNT
Banks will offer $40,000 loans, guaranteed by the Government to qualifying businesses and loans will be interest-free for the first year. This measure allows hoteliers to easily access loans directly through their banking institution instead of a third-party.
For qualifying businesses, the first $10,000 of this amount will be forgivable.
Furthermore, on Friday, October 9th, the Canada Emergency Business Account (CEBA) was expanded, which will enable eligible businesses access to an additional $20,000. If repaid by December 31, 2022 up to half ($10,000) will be forgivable. Application deadlines have also been extended to December 31, 2020.
Banks will offer $40,000 loans, guaranteed by the Government to qualifying businesses and loans will be interest-free for the first year. This measure allows hoteliers to easily access loans directly through their banking institution instead of a third-party.
For qualifying businesses, the first $10,000 of this amount will be forgivable.
Furthermore, on Friday, October 9th, the Canada Emergency Business Account (CEBA) was expanded, which will enable eligible businesses access to an additional $20,000. If repaid by December 31, 2022 up to half ($10,000) will be forgivable. Application deadlines have also been extended to December 31, 2020.
BUSINESS CREDIT AVAILABILITY PROGRAM (BCAP)
EDC Business Credit Availability Program (BCAP) Guarantee offers up to up to $6.25 million to help cover operating costs during a period where revenues have been temporarily reduced due to the COVID-19 pandemic. The loan program is aimed to support businesses cover payroll and operating costs caused by the current economic situation. Offering flexibility, businesses may repay over 5 years and benefit from 6 months principal payment postponement. The EDC will guarantee 80% of your new operating line of credit or new term loan.
Criteria:
The direct online application can be found here. Note that the program does not make funds available to businesses which operate an onsite bar or lounge, however restaurants would be acceptable. If you have any issues with this application, please reach out to us. The Government has asked us to flag gaps in the system that need fixing, and are willing to review hotel accounts with issues for us.
EDC Business Credit Availability Program (BCAP) Guarantee offers up to up to $6.25 million to help cover operating costs during a period where revenues have been temporarily reduced due to the COVID-19 pandemic. The loan program is aimed to support businesses cover payroll and operating costs caused by the current economic situation. Offering flexibility, businesses may repay over 5 years and benefit from 6 months principal payment postponement. The EDC will guarantee 80% of your new operating line of credit or new term loan.
Criteria:
- Your business is Canadian-based and in operation as of March 1, 2020
- Your business was directly or indirectly impacted by COVID‐19
- Your business must have been financially stable and viable prior to the current economic turmoil
- Subject to each financial institution’s underwriting criteria
The direct online application can be found here. Note that the program does not make funds available to businesses which operate an onsite bar or lounge, however restaurants would be acceptable. If you have any issues with this application, please reach out to us. The Government has asked us to flag gaps in the system that need fixing, and are willing to review hotel accounts with issues for us.
CANADA EMERGENCY WAGE SUBSIDY
The Canada Emergency Wage Subsidy (CEWS) program has been extended until June 2021. The subsidy rate as of September 2020 was initially 45% in November and 25% in December. As of October 9th, this subsidy rate was raised to include 65% of eligible wages until December 19, 2020 for hardest hit businesses. Further details are anticipated for the January to June 2021 period.
Read more from Ceridian on 'What the Canada Emergency Wage Subsidy Means for Employers'
The Canada Emergency Wage Subsidy (CEWS) program has been extended until June 2021. The subsidy rate as of September 2020 was initially 45% in November and 25% in December. As of October 9th, this subsidy rate was raised to include 65% of eligible wages until December 19, 2020 for hardest hit businesses. Further details are anticipated for the January to June 2021 period.
Read more from Ceridian on 'What the Canada Emergency Wage Subsidy Means for Employers'
ENHANCED TAX FLEXIBILITY
The B.C. government is bringing financial relief for people and businesses as we address the effects of COVID-19.
The B.C. government is bringing financial relief for people and businesses as we address the effects of COVID-19.
COLUMBIA BASIN TRUST ANNOUNCE LOCAL FINANCIAL SUPPORT*
Columbia Basin Trust announced $11.7M in new funding, which includes supports for small businesses in the form of low-interest loans through CBT’s new Small Business Working Capital Loan program. Other existing CBT programs will also increase support for impacted small businesses.
To help small business in the Basin, the Trust will:
*Currently this relief is on hold pending the provincial election
Columbia Basin Trust announced $11.7M in new funding, which includes supports for small businesses in the form of low-interest loans through CBT’s new Small Business Working Capital Loan program. Other existing CBT programs will also increase support for impacted small businesses.
To help small business in the Basin, the Trust will:
- provide low interest working capital loans to help businesses meet immediate needs or plan for future recovery
- increase the support available through the Impact Investment Fund
- increase supports for businesses currently participating in the Basin RevUp program
- provide flexibility and customized support through through Summer Works, School Works and the Career Internship Program
- increase the resources available through the Basin Business Advisors program and the Basin RevUp program
- increase support to unemployed and underemployed individuals through the Training Fee Support program
- providing a loan payment holiday to investment and economic development clients and being open to discussing other changes to existing arrangements.
*Currently this relief is on hold pending the provincial election
